The latest Ernst & Young Renewable Energy Country Attractiveness Indices have seen Australia drop in ranking for the second time this year.
In Ernst & Young’s previous report in February, Australia’s overall rank in the All Renewables Index had dropped from 12 to 14 due to government policies and wind and solar farm financing issues. May’s Index saw that ranking slip further to 16. Most countries in the top 20 dropped slightly in scoring in the latest rankings, mostly as a result of reductions in incentives and limited access to capital funding.
Ernst & Young says Australia’s latest decreased ranking was due to a reduction in Government spending on renewable energy by AU$1.8b. The major cut to clean energy spending will reduce investment demand for wind power in Australia says the company, which has fallen four points in the wind index.
Australia also lost two points in the solar index after the Government announced plans to reduce the Solar Flagships Program by AU$250m and the capping of the Renewable Energy Bonus Scheme that provides incentives for solar hot water systems, saving AU$160m.
China has achieved its highest ever score in the All Renewables Index, reaching a level held by the USA in late 2007. Japan‘s nuclear disaster has prompted China’s government to call for an increase in the nation’s solar capacity target from 20GW to 50GW by 2020.
The USA remains in second position, but powered ahead in the solar index point score after news its market grew 67% from 2009 to 2010, much of that fueled by Department of Energy (DOE) support of both manufacturers and developers with billions in loan guarantees.
Ernst & Young’s Renewable Energy Country Attractiveness Indices report on the relative attractiveness of 30 countries’ renewable energy markets across a selection of technologies, including: wind, solar PV, solar CSP, biomass, and geothermal.
